Field of the Invention
The present invention generally relates to on-line payments and more particularly to on-line payment fees.
Related Art
More and more consumers are purchasing items and services over electronic networks, such as the Internet. Consumers routinely search for and purchase products and services from merchants and individuals alike. The transactions can take place directly between an on-line merchant or retailer and the consumer, where payment is typically made by entering credit card or other financial information. Purchasing through the Internet from the convenience of a consumer's home, office, or virtually anywhere (with mobile devices) is one main reason why on-line purchases are growing faster and faster.
However, one disadvantage with on-line transactions, as opposed to physical point of sale (POS) transactions, is the assurance of payment by the seller and receipt of the purchased item by the buyer. Payment providers, like PayPal, Inc. of San Jose, Calif., can process a payment for an on-line transaction. Such payment providers can make transactions easier and safer for the parties. For this service, though, payment providers typically charge a fee for the seller and/or the buyer.
These fees are generally fixed by the payment provider prior to engaging in the transaction. In most situations, the fee is imposed on the seller. As a result, the seller sometimes lists or offers items for slightly more to cover that additional fee or the seller may add additional costs for the purchase, such as a shipping and handling charge. Such buyers may not be aware of the additional charge imposed by the payment provider, which benefits both the seller and the buyer. As a result, potential buyers viewing the listings may pass on a purchase because they believe the seller has too high a shipping and handling cost or the item is priced too high.